As digital-first car shopping becomes the new norm, traditional dealerships are under more pressure than ever to adapt—or risk losing ground to online car retailers. Brands like Carvana, Canada Drives, and Clutch have redefined customer expectations with fast, seamless, and fully digital experiences.

But here’s the good news: local dealerships still hold one major advantage—personalized service and in-person expertise. The key is combining that strength with modern tools and digital strategies that today’s customers expect.

If you're wondering how your dealership can stay competitive, here's how to win back market share from online retailers.

1. Strengthen Your Dealership’s Online Presence

In 2025, your dealership’s website and digital storefront are as important as your physical showroom—if not more.

✅ Invest in a mobile-friendly, fast-loading website.
✅ Enable online credit pre-approvals, trade-in appraisals, and even digital retailing.
✅ Maintain an active presence on social media, Google Business, and review platforms.

Today’s car buyers start their journey online. They compare prices, read reviews, and check inventory before ever stepping foot in a dealership. If your online experience is clunky or incomplete, they won’t stick around.

Pro Tip: Use AI-driven tools to personalize your website content based on visitor behavior, increasing engagement and conversions.

2. Embrace Modern Automotive Technology

Online retailers thrive because of automation, data, and user-friendly platforms. Your dealership can compete—if you're using the right tech stack.

💡 Automated lead follow-ups and AI chatbots keep prospects warm even outside business hours.
💡 Sales enablement tools help your team close faster with features like real-time finance matching and lead scoring.
💡 Credit check and trade-in tools, like AVA™ Credit and AVA™ Trade, increase website engagement and generate higher-intent leads.

If your dealership is still relying on outdated software or manual processes, it’s time to upgrade.

3. Build a Smarter Inventory Strategy

A key reason buyers flock to online retailers? Selection.

While national retailers have massive inventory, your dealership can still compete with the right strategy:

🔁 Leverage trade-in tools like AVA Trade to acquire fresh inventory from local customers.
📊 Use inventory data to understand what vehicles are trending and where your gaps are.
📈 Diversify your lineup with high-demand segments like SUVs, hybrids, and budget-friendly used cars.

Inventory optimization is not just about quantity—it’s about having the right vehicles for your market at the right time.

4. Expand Your Dealership’s Geographic Reach

Online car retailers aren’t limited by city limits—and neither should your dealership be.

🚚 Offer delivery or flexible pickup options for buyers outside your immediate area.
📍 Use geo-targeted ads to reach customers in nearby towns or underserved markets.
🌎 Promote remote buying options through your website or social channels.

With the right logistics and messaging, you can attract car buyers who want the convenience of digital retailing but still value local expertise and support.

Final Thoughts: Competing in a Digital-First Automotive Market

You don’t need to become an online-only retailer to stay competitive. But you do need to meet customers where they are—online, on their phones, and expecting seamless experiences.

By upgrading your digital presence, using smart tools, improving inventory flow, and expanding your reach, your dealership can thrive in a market increasingly dominated by digital disruptors.

Want to see how dealerships across Canada are using tools like AVA™ Credit and AVA Trade™ to level up their operations? Book a demo with theand get a personalized walkthrough